RS 9:2775

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RS 9:2775

§2775. Construction projects; equipment and machinery contracts; certain provisions invalid

A. Any provision in a contract for the sale of equipment or machinery to be incorporated in a construction project, as hereinafter defined, which excludes liability for consequential damages is null and void.

B.(1) For the purposes of this Section the term "construction project" shall mean any residential or commercial project for the improvement, construction, modification, or repair of a fixed land based structure, or commercial project.

(2)The term "construction project" shall not include industrial or agricultural projects including but not limited to:

(a)Shipbuilding.

(b)Energy conversion or generation.

(c)Forestry.

(d)Paper production.

(e)Sugar production.

(f)Chemical or petrochemical production.

(g)Fixed platform fabrication.

(h)Mineral extraction, drilling, production, refining, development, transportation, or fabrication.

(i)Any projects constructed at the sites where such activities are being, or are to be conducted.

(j)Public sewerage, water treatment, or pumping facility.

C. "Consequential damages" are defined as loss of revenue, production, profits, use, rental income, or cost of replacement facilities, equipment and/or product, as may be applicable.

Added by Acts 1983, No. 330, §1. Acts 1984, No. 564, §1; Acts 1988, No. 533, §1.